Goldman Sachs: US hedge funds sell semiconductors 4th straight week
Business
Hedge funds in the US have been selling off semiconductor and tech hardware stocks for the fourth week straight, according to Goldman Sachs.
The SOX index, which tracks chip companies, dropped 4.2% last week as investors grew uneasy about slower returns from AI spending and waited for big chipmakers to announce their earnings.
Hedge funds buy ETFs, steadier sectors
While cutting back on semiconductors and even some industrial and consumer stocks, hedge funds have shifted more money into index funds and ETFs that follow the broader market.
There's also been a bump in buying in steadier sectors like commercial services, real estate, consumer staples, and energy, likely a move to ride out all this market uncertainty.